Probe Mines Sells Its Goldex Royalty Interest to Agnico-Eagles Mines
for $18 Million
TORONTO, ONTARIO -- (Marketwire) -- 11/23/12 -- Probe Mines Limited
(TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce
that it has sold its 5% Net Smelter Royalty (the "Royalty") on a
portion of the Goldex Mine to Agnico-Eagle Mines Limited
("Agnico-Eagle") for total consideration of $18.0 million.
Under the terms of the Purchase Agreement (the "Agreement"),
Agnico-Eagle will provide Probe with the following consideration for
the acquisition of the Royalty:
a. a cash remittance of $14.0 million to Probe at closing;
b. an additional payment of $2.5 million payable, at the option of Probe,
in cash or common shares in the capital of Agnico-Eagle in the event
that production at the portion of the Goldex Mine subject to the Royalty
exceeds 17,320 ounces (such shares to be priced at a 5-day VWAP); and
c. an additional payment of $l.5 million payable, at the option of Probe,
in cash or Agnico-Eagle Shares in the event that production at the
Goldex Mine subject to the Royalty exceeds 20,320 ounces, inclusive of
the 17,320 ounces provided for in paragraph (b) above (such shares to be
priced at a 5-day VWAP).
Dr. David Palmer, President of Probe commented, "We are very pleased
with this transaction as it provides the Company with a non-dilutive
source of funding and the necessary capital for continued work on the
Company's Borden Lake Gold Project. With this transaction, Probe
remains well-funded through the foreseeable future, which includes
our projected exploration and expansion drilling programs during 2013
and potentially well into 2014."
This transaction is expected to close on or about November 29, 2012.
About Probe Mines:
Probe Mines Limited is a Canadian precious metals exploration company
whose key asset is the Borden Lake Gold project in Ontario, Canada.
As of July 31, 2012, the Company had approximately $27 million in
treasury and a portfolio of highly prospective mineral properties.
The Company is actively exploring a significant new gold resource on
its Borden Lake project near Chapleau, Ontario and has 100% interest
in the Black Creek chromite deposit located in Northern Ontario. The
Company's shares trade o
n the TSX Venture Exchange under the symbol
David Palmer, Ph.D., P.Geo., is the qualified person for all
technical information in this release. To find out more about Probe
Mines Limited, visit our website at www.probemines.com.
On behalf of Probe Mines Limited,
Dr. David Palmer, President & Chief Executive Officer
This News Release includes certain "forward-looking statements".
These statements are based on information currently available to the
Company and the Company provides no assurance that actual results
will meet management's expectations. Forward-looking statements
include estimates and statements that describe the Company's future
plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur.
Forward-looking statements may be identified by such terms as
"believes", "anticipates", "expects", "estimates", "may", "could",
"would", "will", or "plan". Since forward-looking statements are
based on assumptions and address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results relating to, among other things, results of
exploration, project development, reclamation and capital costs of
the Company's mineral properties, and the Company's financial
condition and prospects, could differ materially from those currently
anticipated in such statements for many reasons such as: changes in
general economic conditions and conditions in the financial markets;
changes in demand and prices for minerals; litigation, legislative,
environmental and other judicial, regulatory, political and
competitive developments; technological and operational difficulties
encountered in connection with the activities of the Company; and
other matters discussed in this news release. This list is not
exhaustive of the factors that may affect any of the Company's
forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
the Company's forward-looking statements. The Company does not
undertake to update any forward-looking statement that may be made
from time to time by the Company or on its behalf, except in
accordance with applicable securities laws.
Shares Issued: 65,221,533
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Probe Mines Limited
Director of Corporate Communications
Probe Mines Limited
Vice President, Corporate Development
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